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Government expects that about one crore well off consumers will surrender the subsidy on cooking gas after Prime Minister Narendra Modi's appeal to people not to take subsidy if they can afford to buy LPG at market price.

The upstream subsidy contribution is by way of discount on crude oil they sell to refineries. With international oil prices almost halving to USD 50 per barrel, providing the subsidy discounts would have meant they got rates way below their cost of production.

India regulates retail prices of liquefied petroleum gas and kerosene to keep prices under check, with producers like ONGC and Oil India selling crude and related products to fuel retailers at a hefty discount to partly compensate for the losses.

The panel is learnt to have recommended ways to achieve fiscal discipline for Budget FY16 by suggesting better targeting of Kerosene, LPG subsidies and cutting government spend via levying user charges on services to shore up non-tax revenues.

Low crude prices will help oil marketing companies reduce underrecoveries on sale of subsidised kerosene and LPG gas. These companies have already been earning income on petrol and diesel as Brent crude fell nearly 48 percent from June when the price was USD 115 a barrel.

Government expects that about one crore well off consumers will surrender the subsidy on cooking gas after Prime Minister Narendra Modi's appeal to people not to take subsidy if they can afford to buy LPG at market price.

The upstream subsidy contribution is by way of discount on crude oil they sell to refineries. With international oil prices almost halving to USD 50 per barrel, providing the subsidy discounts would have meant they got rates way below their cost of production.

India regulates retail prices of liquefied petroleum gas and kerosene to keep prices under check, with producers like ONGC and Oil India selling crude and related products to fuel retailers at a hefty discount to partly compensate for the losses.

The panel is learnt to have recommended ways to achieve fiscal discipline for Budget FY16 by suggesting better targeting of Kerosene, LPG subsidies and cutting government spend via levying user charges on services to shore up non-tax revenues.

Low crude prices will help oil marketing companies reduce underrecoveries on sale of subsidised kerosene and LPG gas. These companies have already been earning income on petrol and diesel as Brent crude fell nearly 48 percent from June when the price was USD 115 a barrel.

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interactions, but the gist is this: diesel is being deregulated once the subsidies become zero after the monthly increases of 50 paise neutralise the losses faced by oil marketing companies. Subsidies on LPG, kerosene and fertiliser are being capped at specific levels - and their market prices deregulated

the ATF is priced higher as it subsidises the other fuels, like kerosene and LPG. it is currently priced around same level as petrol. how much price reduction r u expecting in ATF price, and will that also result in the price of petrol coming down as well? even if there is a minor reduction in ATF

Source:Calcutta Telegraph News - New Delhi, July 4: The government is looking at options to cut the oil subsidy bill, such as a one-time hike in kerosene and cooking gas prices or a phased monthly increase like diesel. “The ministry will put forward different options for the consideration

Source:Economic Times - NEW DELHI: Ruling out any immediate hike in prices of LPG and kerosene, Oil Minister Dharmendra Pradhan today said the new government will continue with the policy of subsidising commonly used cooking fuels.

Big tickets that would continue the bullish rally in Nifty
Good news for some sectors:
# Oil and Gas sector - Phased reduction in LPG/Kerosene subsidy
# Tax slabs - Income tax slabs to be raised from 2,00,000rs. to 3,00,000rs.
# Mortgage tax break - Raise current limit of 1,50,000rs to 3,00,000rs.

Govt. should look at alternatives and rationalize expenditure to keep the price at the current level. It is suggested to bring gas, kerosene, petrol, diesel under a comprehensive scheme and provide it at extremely competitive rates through rationalizing expenditure.

450 per cylinder. Kerosene, of course, remains the holy cow - the so-called poor man`s cooking fuel that is actually used to adulterate diesel. With diesel rising consistently, the government has effectively increased the incentive for adulteration and corruption.
Why do governments do such daft

hold on to HPCL or buy around 405 levels. This stock is bound to go up as indirect oil reforms are the only reality and possibility in the next 6-8 months. I am sure with a looming large fiscal deficit, there will be some bold announcements on LPG and Kerosene prices in the budget.